It is natural to combine technology and human intelligence in fields such as communications, marketing and manufacturing. In the insurance industry, maybe not so much. Clients still receive cards in the mail, managers of meetings in their offices, and people who make changes to communicate. Yet technology is changing how insurance companies provide coverage and how policyholders receive coverage. Advances in technology are beginning to streamline and predict standard insurance-related tasks, from filing claims to adjusting policy coverage. As the industry embraces things like artificial intelligence, machine learning, and other technologies, the relationship between suppliers and customers is also changing. Good processes and data analysis will never eliminate the human touch. However, these improvements will increase accuracy, make information more accessible, and can improve the relationship between carriers and customers. From the perspective of insurers and consumers, there are five ways technology is changing the insurance industry.
1. Artificial intelligence provides fast loss estimation.
Generally, when the insurance company files a car claim, the adjuster must be present to determine the damage to the car. The customer submits a complaint online or by phone and will wait for an expert to meet him. An expert inspects the vehicle, notes defects and damages and devises a plan. This process can take several days, extending the time between the customer’s first contact and payment.
At this point, the customer may not have their vehicle or be stuck with a vehicle with visible damage. Intelligence reduces the time it takes for insurance companies to issue and process plans. Instead of waiting for an adjuster, policyholders can use the app to instantly take pictures of the damage they want repaired. AI-based algorithms provide estimates in seconds. This allows the insurance company to get money from the policy owner or repair shop quickly.
2. Telematics determines revenue.
Telematics may not be a familiar term to many insurance customers. But they may be familiar with the process that comes up with car insurance premiums from their current insurers. Some insurers are sending out billing and e-mails featuring new technology that monitors customers’ driving habits. It is a monitoring device that goes into the car and records the behavior of the driver. These devices are used to collect data including location, speed, driving distance and accidents. The insurers take this information into account to determine the premium. In theory, aggressive drivers and those who drive more miles could end up paying higher rates. Conscientious consumers and those who drive less will pay less. Telematics improves the accuracy of risk assessment for suppliers and provides drivers with a better record. Beware: 10 Technology Mistakes
3. Drones survey the damage.
Overall, the use of drone technology is on the rise in many industries. Current forecasts indicate that the market will reach more than $63 billion by 2028. Estimates also reveal that the annual growth rate of the market from 2021 to 2028 will be around 16%. Insurance companies are already contributing to this growth by using drones to detect damage. Homeowners filing complaints for building or water damage may soon be surprised to find a drone flying over their property. Instead of relying on roof inspectors, insurance companies can send drones to take photos of hail and wind damage. The use of drone technology increases the efficiency, accuracy and safety of these assessments. Suppliers can use drones to travel to areas inaccessible to humans after major storms. This technology also has the potential to capture damage from impractical or dangerous angles that humans cannot reach.
4. Machine learning automates claim types.
Filing a claim after a car accident or serious accident can be nerve-wracking. Stress and shock can make it challenging for clients to remember important details, such as the time of an event. Going over the details of a form online or in person can be overwhelming for a legal practitioner to handle and often creates additional stress. However, insurers emphasize the importance of filing a claim immediately. Children automatically remove some customers who may suffer during the complaint. The various kinds of data of history and the policy of the client extends the need to repay the message. Machine learning reduces the chance of errors during the booking process and increases efficiency. Even small claims like windshield repair are made easier as contractors file claims for customers using their policy number.
5. Social media makes customer service more accessible.
No one wants to wait or spend hours waiting for their insurance agent to get their information. Before social media and chatbots, this was the reality for many law enforcement officers waiting for phone calls. Asking questions, trying to get a new policy, or making changes to existing coverage can take weeks. And now that insurance companies are on multiple social media platforms, it has become easier to access customer service. Charbots and emails can also be the way for customers to get help when they need the answer for political colors and insurance.
Investigation shows that now send two messages are now being used in the middle of the clients using. Chatbots and instant messaging on social media can answer everyday questions about updating addresses, changing mortgages, and filing complaints. A customer can send a message directly on social platforms and get a response within a day. Often the carriers can provide a solution in minutes or at least start the process. Satisfaction increases as customers get better service.
Technology and the insurance industry
Advances in technology are affecting the way consumers and businesses interact in many industries. Insurance is one of those, as carriers integrate technologies like AI telematics, and machine learning into their business models. Providers and customers will benefit from these improvements as coverage and services become more equitable. Without forgetting the simplicity of the process and the increase in accessibility. The human touch will always play an important role, but technology is here to continue to play a role in enhancing the overall customer experience.